Question

In 2020, only 57 percent of the adult population (260 million) was employed. If the employment rate increased to a typical

nonrecession level of 61 percent,
Instructions: In Part a, round your response to one decimal place. In Part b, enter your response as a whole number.
million
a. how many more people would be working?
_____
b. by how much would output increase if GDP per worker was $100,000?

Answer 1

Approximately 10.4 million more people would be working if the employment rate increased from 57% to 61% of the adult population (260 million total). Additionally, with a GDP per worker of $100,000, this would equate to an increased output of $1.04 trillion.

Step-by-step explanation:

The student is asking how many more people would be working if the employment rate increased from 57 percent to 61 percent of the adult population, which is 260 million people.

To find the number of people that would be working at a 61 percent employment rate, multiply the adult population by 0.61:

260 million × 0.61 = 158.6 million people would be employed.

Then, to find out how many more people would be working compared to the original 57 percent employment rate (which is 260 million * 0.57 = 148.2 million), we subtract the number of currently employed people from the new employment figure:

158.6 million - 148.2 million = 10.4 million more people would be working.

For part b, we need to calculate the increase in output if GDP per worker was $100,000. We simply multiply the number of additional workers by the GDP per worker:

10.4 million more people × $100,000 = $1.04 trillion increased output.